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Measuring and decomposing changes in agricultural productivity, nitrogen use efficiency and cumulative exergy efficiency: Application to OECD agriculture

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  • Hoang, Viet-Ngu

Abstract

This paper uses an aggregate quantity space to decompose the temporal changes in nitrogen use efficiency and cumulative exergy use efficiency into changes of Moorsteen–Bjurek (MB) Total Factor Productivity (TFP) changes and changes in the aggregate nitrogen and cumulative exergy contents. Changes in productivity can be broken into technical change and changes in various efficiency measures such as technical efficiency, scale efficiency and residual mix efficiency. Changes in the aggregate nitrogen and cumulative exergy contents can be driven by changes in the quality of inputs and outputs and changes in the mixes of inputs and outputs. Also with cumulative exergy content analysis, changes in the efficiency in input production can increase or decrease the cumulative exergy transformity of agricultural production. The empirical study in 30 member countries of the Organisation for Economic Co-operation Development from 1990 to 2003 yielded some important findings. The production technology progressed but there were reductions in technical efficiency, scale efficiency and residual mix efficiency levels. This result suggests that the production frontier had shifted up but there existed lags in the responses of member countries to the technological change. Given TFP growth, improvements in nutrient use efficiency and cumulative exergy use efficiency were counteracted by reductions in the changes of the aggregate nitrogen contents ratio and aggregate cumulative exergy contents ratio. The empirical results also confirmed that different combinations of inputs and outputs as well as the quality of inputs and outputs could have more influence on the growth of nutrient and cumulative exergy use efficiency than factors that had driven productivity change.

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  • Hoang, Viet-Ngu, 2011. "Measuring and decomposing changes in agricultural productivity, nitrogen use efficiency and cumulative exergy efficiency: Application to OECD agriculture," Ecological Modelling, Elsevier, vol. 222(1), pages 164-175.
    • Handle: RePEc:eee:ecomod:v:222:y:2011:i:1:p:164-175
    DOI: 10.1016/j.ecolmodel.2010.09.032
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    3. Rusielik, Robert, 2021. "Agricultural Efficiency And Its Components In European Union Countries Between 2009-2019. Analysis Using Aggregate Färe-Primont Productivity Indices," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2021(3).
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    5. Li, Fu Jia & Dong, Suo Cheng & Li, Fei, 2012. "A system dynamics model for analyzing the eco-agriculture system with policy recommendations," Ecological Modelling, Elsevier, vol. 227(C), pages 34-45.
    6. Mad Ithnin Salleh & Shariffah Nur Illiana Syed Ismail & Nurul Fadly Habidin & Nor Azrin Md Latip, 2016. "Efficiency and Productivity Changes of the Malaysian Community Colleges," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(12), pages 407-424, December.
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    8. Hoang, Viet-Ngu & Coelli, Tim, 2011. "Measurement of agricultural total factor productivity growth incorporating environmental factors: A nutrients balance approach," Journal of Environmental Economics and Management, Elsevier, vol. 62(3), pages 462-474.
    9. Arjomandi, Amir & Valadkhani, Abbas & O’Brien, Martin, 2014. "Analysing banks’ intermediation and operational performance using the Hicks–Moorsteen TFP index: The case of Iran," Research in International Business and Finance, Elsevier, vol. 30(C), pages 111-125.
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